India has imposed import curbs on suspension grade PVC resin for a period of six months, targeting shipments with a CIF value of $0.766 per kilogram or less, according to a notification from the Directorate General of Foreign Trade (DGFT). The restriction, classified as "Restricted" under Indian trade rules, applies to all such imports unless specifically exempted.
Restriction Details and Exemptions
The DGFT order explicitly states that "the import of Suspension grade PVC Resin… having CIF Value of less than or equal to $0.766 per Kilogram is 'Restricted' for a period of six months." However, the notification carves out exceptions for imports by 100% Export Oriented Units (EOUs) , units in Special Economic Zones (SEZs) , and imports under the Advance Authorisation Scheme, provided that the imported inputs are not sold into the Domestic Tariff Area (DTA).
| Exemption Category | Condition |
|---|---|
| 100% Export Oriented Units | Imported inputs not sold into DTA |
| Units in Special Economic Zones (SEZs) | Imported inputs not sold into DTA |
| Advance Authorisation Scheme | Imported inputs not sold into DTA |
This conditional exemption allows export-oriented industries to continue sourcing the resin without disruption, while preventing diversion into the domestic market, which could undercut Indian producers.
Background: Anti-Dumping Investigation
The import curb follows an earlier anti-dumping investigation initiated by the Directorate General of Trade Remedies (DGTR) . According to the notification, the investigation was launched after a complaint by domestic manufacturers Chemplast Cuddalore Private Limited, DCM Shriram Limited, and DCW Limited. The companies alleged that suspension grade PVC resin was being dumped from seven countries, prompting the government to take protective trade measures.
The DGTR probe aimed to assess whether imports at prices below normal value were causing injury to the domestic PVC resin industry. While the notification does not name the seven countries involved in the original complaint, the six-month restriction now in place directly addresses the pricing threshold identified during the investigation.
Implications for Traders and Industry
For commodity traders and procurement teams, the restriction introduces a clear price floor for imported suspension grade PVC resin: any lot priced at or below $0.766/kg CIF is effectively banned from entering India unless routed through EOU, SEZ, or Advance Authorisation channels. This could push traders to renegotiate contract terms or source higher-priced alternatives to comply.
The move benefits domestic producers — Chemplast Cuddalore, DCM Shriram, and DCW Limited — who had sought protection against alleged dumping. These companies are likely to see improved pricing power and market share in the domestic market over the next six months.
On the demand side, downstream PVC processors, particularly those not operating in export-oriented zones, may face higher raw material costs as they are forced to buy domestic resin or imports above the $0.766/kg threshold. The restriction also heightens the need for careful supply chain planning, especially for bulk consumers of suspension grade PVC used in pipes, fittings, and construction materials.
What’s Next
Market participants will watch for any extension of the restriction beyond six months or a possible shift to definitive anti-dumping duties once the DGTR completes its full investigation. Traders dealing in other PVC grades or related chemicals should also monitor for similar trade actions, given the government's active use of trade remedies to protect domestic manufacturing. The six-month timeline means the curbs will be in place at least until early 2027, influencing Indian PVC resin pricing and trade flows through that period.
